Banque du Caire achieves net prof­its of EGP 2bn in 9M18

BANK IN­JECTED EGP 1.6BN TO FUND MI­CRO PROJECTS, IN­CLUD­ING 55% FOR UP­PER EGYPT, 35% FOR WOMEN

The Daily News Egypt - - banking - By Hos­sam Mounir

The busi­ness re­turns of Banque du Caire have shown an in­crease in the bank’s prof­its in the first nine months of 2018 (9M18) be­fore tax de­duc­tion, reach­ing EGP 3.2bn com­pared to EGP 2.3bn last year. Net prof­its have in­creased to EGP 2bn af­ter taxes, com­pared to the pre­vi­ous EGP 1.3bn.

The bank’s in­di­ca­tors have also demon­strated a growth in the cap­i­tal ad­e­quacy ra­tio in the end of the third quar­ter (Q3) of 2018 to reach 15.1% com­pared to 12.4% in Septem­ber 2017. The bank has also achieved a a re­turn on prop­erty rights of 36.2% and a re­turn on as­sets of 1.8% dur­ing the same pe­riod.

Ac­cord­ing to the bank’s Chair­per­son,Tarek Fayed, the net in­come by Q3 of the fiscal year of 2018 reached EGP 4.6bn com­pared to EGP 3.5bn with a 29% in­crease.The net re­turn rate in­creased to 4.5% com­pared to 3.7% last year.The net in­come reached EGP 780m com­pared to EGP 630m, with a 24% in­crease.

Fayed stressed that the leaps achieved in 2018 rep­re­sent a steady progress to­wards the bank’s strate­gic ob­jec­tives.

Ac­cord­ing to Fayed, the bank man­aged to achieve an in­crease in the total loan port­fo­lio by the end of Q3 of 2018, an in­crease of 24% through the in­fu­sion of the fund­ing of var­i­ous projects in or­der to con­trib­ute to­wards achiev­ing eco­nomic growth,point­ing out that the loan port­fo­lio in the bank reached EGP 55.4bn by the end of Septem­ber 2018, com­pared to EGP 44.5bn by the end of 2017, an in­crease of EGP 1.9bn.

Fur­ther­more, the bank’s loans to de­posits ra­tio in reached 45.2% in Septem­ber 2018, com­pared to 36.5% in De­cem­ber 2017, sup­ported by the ex­pan­sion in di­verse credit fields, such as fund­ing ma­jor com­pa­nies, small and medium sized en­ter­prises (SMEs), as well as mi­cro fi­nance.

More­over, the bank’s loan port­fo­lio for ma­jor com­pa­nies in­creased from EGP 19.9bn in Septem­ber 2017 to EGP 27.8bn in Septem­ber 2018, a growth of 40%, stated Fayed. He also noted that the in­crease was in the fund­ing of man­i­fold eco­nomic ac­tiv­i­ties, in­clud­ing in­dus­try, con­tract­ing, con­struc­tion, petroleum, and nat­u­ral gas.

In or­der to sup­port SMEs and mi­cro en­ter­prises, the bank in­creased the vol­ume of the loans al­lo­cated for these projects by about EGP 1.1bn, tak­ing the total loans port­fo­lio to EGP 2.4bn in Septem­ber 2018, with an in­crease of 80%, com­pared to the case in De­cem­ber 2017, de­clared Fayed.The bank has also man­aged to add new clients to these projects, reach­ing an in­crease of 30%.

Re­gard­ing fund­ing mi­croen­ter­prises, Fayed ex­plained that the fund­ing port­fo­lio of these projects in­creased from EGP 2.2bn by the end of De­cem­ber 2017 to EGP 3.8bn by the end of Septem­ber 2018,with a growth of 80%.The num­ber of clients also in­creased from 154,000 to 196,000,with a 28% growth.

“The bank’s mi­croen­ter­prises’ loan port­fo­lio is char­ac­terised by a good geo­graphic distri­bu­tion, as the fa­cil­i­ta­tions pro­vided to Up­per Egypt ac­count for 55% of the total fa­cil­i­ta­tions, and women get 35% of these fa­cil­i­ta­tions,” Fayed said.

He added that as part of the bank’s ef­forts to sup­port the ini­tia­tives launched by the Cen­tral Bank of Egypt (CBE),the bank man­aged to take the mort­gage fi­nance port­fo­lio to EGP 1.5bn, and the num­ber of ben­e­fi­cia­ries reached 18,000.

Ac­cord­ing to Fayed,Banque du Caire aims to take the mort­gage fi­nance port­fo­lio to EGP 1.7bn by the end of this year, with a growth of 90% com­pared to 2017.

Fayed pointed out that the bank’s cur­rent ad­min­is­tra­tion has been keen to carry out an in­ter­nal re­struc­ture of the bank’s ad­min­is­tra­tion and in­crease the op­er­a­tional ef­fi­ciency of all its employees as well as sup­port it with some ex­per­tise in or­der to help the bank fur­ther im­prove its po­si­tion the mar­ket.

The bank has es­tab­lished a man­age­ment spe­cial­ized in global trans­ac­tions bank­ing. It aims to pro­vide bank­ing so­lu­tions in manag­ing liq­uid­ity and cash flows of fi­nan­cial com­pa­nies and in­sti­tu­tions as well as fund­ing all for­eign trade op­er­a­tions.

Over and above, the bank also de­signs bank­ing prod­ucts and ser­vices which suit dif­fer­ent client seg­ments, es­pe­cially young in­di­vid­u­als.What’s more, the bank is also about to in­tro­duce wealth man­age­ment ser­vice in or­der to pro­vide ex­cel­lent ben­e­fits to this client seg­ment.

“The bank plans to open 30 new branches in early 2019, and aims to add 20-25 branches an­nu­ally dur­ing the three up­com­ing years. It also tar­gets to take the num­ber of its ATMs to 1,000 by the end of 2018,” Fayed an­nounced.

In ad­di­tion,Fayed stressed the im­por­tance of dig­i­tal bank­ing ser­vices, which come at the top of the bank’s pri­or­i­ties. The bank plans to launch mo­bile and in­ter­net bank­ing in 2019, and it is cur­rently con­sid­er­ing ex­pand­ing its dig­i­tal bank­ing ser­vices in line with the CBE’s strat­egy to im­prove dig­i­tal bank­ing ser­vices in the sec­tor.

The bank has en­acted e-col­lec­tion of the loans and credit card debts in­stal­ments of avail­able through a net­work of e-pay­ment com­pa­nies.It has also added more ser­vices to its Cairo CashWal­let ser­vice.

Re­gard­ing the Cairo Leas­ing Com­pany, which was launched by the bank in March 2018,Fayed ex­plained that the com­pany man­aged to achieve a re­mark­able op­er­a­tional achieve­ment,as the total as­sets reached EGP 600m by the end of Septem­ber, and the bank is tar­get­ing EGP 1bn in Q1 of 2019.

The bank’s ex­pan­sion plan will not only be lo­cal, but might also ex­pand to other coun­tries, Fayed ex­plained. Plus, he noted that the bank is about to launch a rep­re­sen­ta­tive of­fice in the UAE in or­der to ex­pand the busi­ness scale in Gulf coun­tries.The bank is also work­ing on re­struc­tur­ing the In­ter­na­tional Banque du Caire in Uganda.

Over the past few years, the bank has man­aged to launch sev­eral com­pre­hen­sive com­mu­nity cam­paigns tar­get­ing sus­tain­able devel­op­ment, as­serted Fayed.

He ex­plained that the bank’s strat­egy is not only lim­ited to of­fer­ing bank­ing ser­vices to its clients, but it also takes into con­sid­er­a­tion the com­mu­nity di­men­sion in all its poli­cies and mea­sures through in­creas­ing the an­nual fi­nan­cial al­lo­ca­tions for so­cial re­spon­si­bil­ity ini­tia­tives in mis­cel­la­neous sec­tors, such as ed­u­ca­tion, health,nutri­tion,med­i­cal and sci­en­tific re­search, devel­op­ment of vil­lages, the em­pow­er­ment of women and youth, as well as sup­port­ing hand­i­crafts.

EGP 10.9BN IN­CREASE IN LOAN PORT­FO­LIO, IN­CLUD­ING EGP 7.9BN FOR MA­JOR COM­PA­NIES, EGP 1.1BN FOR SMALL AND MEDIUM ONES

Chair­per­son of Banque du Caire , Tarek Fayed

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